Ermac Company provides a defined benefit plan in which employees receive a lump sum postemployment benefits payable on termination of service and equal to 1% of final salary for each year of service. The salary of Johnny Cage in year 1 is P720,000 and is assumed to increase at 7% (compound) each year. The discount rate used is 10%. Johnny Cage is expected to leave at the end of year 5. Note: Round off future value and present value factors to two places (e.g. X.XX). Round off amounts to the nearest peso.

What is the current service cost for year 2?